Ridi hydropower to issue IPO of 11.7 lakh units from February 16

ShareSansar, February 9:

The wait for the Initial Public Offering (IPO) of Ridi Hydropower Development Company Limited is finally over.

Within a week after the Securities Board of Nepal (SEBON) approved of the IPO of Rs 100 face value, the hydropower developer has issued a public appeal today, notifying that 11.70 lakh units of the primary shares will be floated from February 16.

The IPO being managed by Civil Capital Market Limited and co-managed by Elite Capital Limited will close on February 20 latest.

Though the closing date for the IPO could be extended till March 3, it will most probably be closed on February 20 itself, considering the huge response to the IPO, especially those issued by the hydropower group, in the recent past.

Applicants must apply for a 50 units and could apply for the maximum of 10,000 units.

Of the total units of the primary shares, 58,500 units have been kept aside for Nabil Balanaced Fund-1, SIG1 and Nagarik Ekanaga Yogana, and additional 23,400 units have been reserved for the hydropower's staff.

But there is one bad news, too, for the investors, who were hoping to invest in the Ridi IPO from the money refunded from the last IPOs issued by Mithila Laghubitta Bikas Bank and Century Commercial Bank.
 
The refund from both these IPO will not be made before the Ridi IPO closes, according to the sources privy of the development. Hence they would have to manage money from some other sources.

It may also be noted that Ridi  has already issued the IPO for 3 lakh unit equity shares to the local residents affected or in the vicinity of the 2.4 MW Ridi Khola Small Hydropower Project in October last year.

Ridi Khola Small Hydropower Project came into operation in Kartik 2066, has already sold electricity worth Rs 14.83 crore to the Nepal Electricity Authority.

The developer of the project, Ridi Hydropower Development Company was registered as a private company back in Ashwin 2057 and converted to a public undertaking in Shrawan 2063.

The company has the authorized capital of Rs 50 crore, issued capital of Rs 30 crore and the paid-up capital of Rs 18.3 crore after the issuance of the IPO to the locals.
Civil Capital is the issue manager for Ridi Hydropower’s IPO.

After the issuance of the IPO to the general public, Ridi Hydropower’s paid-up will surge to Rs 30 crore.

ICRA Nepal has given Grade 3 credit rating to the IPO of the company, which had posted a net profit of Rs 2.12 crore in the last fiscal year 2069/70.

Ridi Hydropower Development Company, which is one of the companies in the group of Arun Valley and Rairang Hydropower development company have four projects under its belt.

Among them, three are already operational while one is under construction.

Some important information about the projects being developed/ managed by Ridi Hydropower:

Ridikhola Small Hydropower Project:
Project Status : In Operation

Power Purchase Agreement  : 24 August 2006 (8 Bhadra 2063 B.S.)
Construction License           : 31 May 2007 (17 Jestha 2064)
Project Construction Date    : 8 August 2008 (23 Bhadra 2064 B.S.)
Project Completion Date      : 31 August 2009 (15 Bhadra 2066 B.S.)
Commercial Operation Date  : 27 October 2009 (10 Kartik 2066 B.S.)Project Locations:
VDCs    :    Ruru and Digam VDCs of Gulmi & Siddeshwor VDC of Palpa district
Headworks    :    Digam VDC – 6 and Siddeshwor VDC – 1
Penstock Alignment    :    Digam VDC-6 & Ruru VDC 7, 8 & 9, Gulmi
Powerhouse    :    Ruru VDC Ward No. 7, Gulmi

Project Salient Features:
Type of Project    :    Run-of River
River Catchment    :    591 sq.km
Gross Head    :    94.5m
Design Discharge    :    3.2 m3/sec
Installed Capacity    :    2400kW
Contract Energy    :    15.73GWh (Annual)
Construction Period    :    24 Months
Total Project Cost    :    NRs. 400 million

Piluwakhola Hydropower Project (3MW)

Project status: In Operation

Arun Valley Hydropower Development Company has constructed and operating Piluwakhola Small Hydropower Project at Sankhuwasava District in Koshi Zone. This is a run of river type project located in Eastern Part of the country at Piluwa River, a tributary of Arun River. The power purchase agreement with Nepal Electricity Authority (NEA) was completed in 2000 to supply 19.56GWh per annum. The construction of this project was started in March 2000 and completed in August 2003. The plant started commercial operation from 18 September 2003. The power generated from the project is synchronized into 33kV national grid close to the project and it helped to minimize the system losses. Nearly 300 villages of Sankhuwasabha, Terathum, Bhojpur and Dhankuta districts are directly benefited from the reliable supplied by this project. It has improved the livelihood of people of these areas.
        
        
Project Location: Chainpur VDC, Sankhuwasabha Salient Features
Installed Capacity    3.0 MW
Design Discharge    3.5 m3/sec
Gross Head    112.5 meters
Contract Energy    19.547 GWh
Construction Period    36 months
Total Project Cost    NRs. 326.4 million
Cost Per Kilowatt    US$ 1451 Per KW (1 US $ =NRs.75)

Rairang Small Hydropower Project (500kW):

Project status : In operation since 2004 A.D.

Developed By : Rairangkhola Hydropower Development Company Limited
Project Managed By : Ridi Hydropower Development Company Limited
Renovation in 2012 A.D.
Project Locations:
VDC            :     Thakre VDC at Dhading district
Headworks        :    Thakre VDC
Powerhouse        :    Thakre VDC

Project Salient Features:
Type of Project        :    Run-of River
Gross Head        :    328m
Design Discharge    :    200 l/sec
Installed Capacity    :    500kW
Contract Energy     :    2318868 kWh (Annual)
Head Pond Area    :    532 m2
Head Pond Volume    :    3458.58 m3

Iwakhola Hydropower Project (9900kW):

Project Status : Under Construction

Developed By : Rairang Hydropower Development Company Limited  
Project Managed By     : Ridi Hydropower Development Company Limited
Environment Study     : Initial Environmental Examination (IEE) approved
PPA Status         : Signed on 27th Baishak 2070
Project Locations    :
VDCs    :    Tharpu VDC of Panchthar district and Sabalakhu VDC of Taplejung district
Headworks    :    Sabalakhu & Tharpu VDCs
        
Powerhouse    :    Tharpu VDC

Project Salient Features:
Contract Energy:56.625GWh (Annual)
Type of Project    :    Run-of River
Gross Head    :    100.8m
Design Discharge    :    12.3 m3/sec
Installed Capacity    :    9900kW
Contract Energy    :    56.625GWh (Annual)
Construction Period    :    30 Months
Estimated Commercial Generation    :    Within Mangshir 2074 B.S
Project Financials        
Total Estimated Project Cost    :    149.48 crore
Average Yearly Revenue    :    34.47 crore
Cost per Kw in US$    :    1776
Internal Rate of Return    :    15.89%
Return on Equity    :    38.85%
B/C Ratio        :    1.34
Simple Payback Period    :    6.77 years